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If you're a freelancer, 1099 contractor, or small business owner, you get tax write-offs that W-2 employees can't claim. Tell us what you do for work, and we'll tell you what you can write off.
At Keeper Tax, here’s one of the things we get asked the most: “What expenses can I deduct as a freelancer?”
It’s a good question. Most self-employed workers don’t claim the write-offs they’re allowed to take. That means they end up overpaying the IRS, by about 21%.
That’s why we built this tool. Find your job in the dropdown above, and we’ll show you the write-offs you can claim at tax time.
The tax deductions you can take might depend on what you do for work. Some are super specific. For example:
Other write-offs are common across all kinds of jobs.
Let’s go over the top 22 don’t-miss deductions. For each one, we'll tell you:
Don’t want to deal with the paperwork yourself? Then let us file your self-employment taxes for you.
Tax filing for freelancers and side hustlers
Most tax software isn't built for you. Ours is. We know every form you need and every deduction you can take to pay less this year.
💸 Good for lowering: Your self-employment taxes
🧾 Where to claim it: Schedule C, Box 9 (“Car and truck expenses”) and Form 4562
If you ever drive for work, you can write off your car expenses.
There are two ways to claim your car-related costs:
You’ll have to pick one of them — you can’t use both.
See how the two methods compare in our guide to actual expenses vs. standard mileage. But for now, here's a quick breakdown.
Deducting car expenses using the actual expenses method
When you use this method, you'll be able to deduct part of what you actually spend on your car (depending on how much you're driving it for business rather than personal use). Think:
… and more!
The amount you can claim is based on how much you drive specifically for work, or your “business-use percentage.”
If your car use is 60% work-related, you’ll be able to write off 60% of what you’re spending on all the expenses above.
Deducting car expenses using the standard mileage method
When you use this method, you’ll:
There’s usually one rate, but for 2022, you’ve got two. It’s $0.585 for the first half of the year (January to June), and $0.625 for the second half (July to December).
General rule of thumb:
That’s how the math works out to give you the biggest savings.
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
You might think of parking as a car-related expense. But this write-off really belongs in its own category.
That’s because work-related parking fees are 100% tax-deductible. There’s no need to deal with a business-use percentage.
It’s pretty hard to park somewhere partially for work and partially not for work. (Even if you tack a personal errand on after your work stop, you can still write off the full amount.)
No. If your client reimburses you, it isn’t a write-off. You can only claim your parking if you are the person footing the bill.
Unfortunately, no. Parking tickets don't count as a write-off. So keep track of your meter time while you’re out on the job!
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Line 30 and Form 8829
They say the home is where the heart is. But for lots of freelancers, home is also where the work is.
Enter the home office deduction. It’s a powerful tax break exclusively for the self-employed. And it lets you write off a chunk of your living expenses.
Self-employed people who WFH can take the home office deduction.
There has to be a space in your home that you use only for business. It could be:
Anything business-related is fair game.
There are some rules. To quickly figure out if you qualify, take our home office deduction quiz. (You’ll also find a full explanation of this tax break, including a breakdown of everything you can claim and a downloadable cheat sheet.)
Here are some common expenses you can deduct:
… and more!
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 20 (“Rent or lease”)
The home office deduction lets you write off part of your personal rent. If you’re a freelancer who rents a separate office or coworking space, that’s a write-off too.
Yes, you can also deduct any rent you pay on business equipment. Here are some examples:
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
These days our lives are run on technology. (All hail our digital overlords!) For that reason, even the simplest freelance business will need things like:
Only if you use it exclusively for work. This goes for other tech too: a work-only phone or monitor is 100% tax-deductible.
If you use a gadget for work and personal reasons, write off your business-use percentage.
What happens if you’re not sure how much you use an item for work?
If you’re unsure about your business-use percentage, you can:
So, if you think you’re at about 50%, make it 40% — just to stay on the safe side. The higher your business-use percentage, the more likely you are to set off red flags at the IRS.
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
Much like your tech hardware, you can deduct your internet and phone bills from your tax bill — but not entirely.
One exception: The phone bill for a dedicated work device is completely tax-deductible.
For the most part, though, you’re likely to use your Wi-Fi and phone service for both business and personal purposes. So go ahead and take your business-use percentage.
💸 Good for lowering: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 22 (“Supplies”)
As a 1099 contractor, you'll probably need some supplies and tools to run your business. Luckily, you can deduct the amount you spend on them each calendar year.
Some office supplies are common no matter what kind of work you do. Think:
There are also industry-specific deductions:
Bottom line: If you use something to do your work, it’s deductible.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 24b (“Deductible meals”)
You can write off a meal — or even a quick coffee — as long as it’s work-related. Some examples:
This write-off doesn’t apply if you’re setting up shop in a cafe, munching on bread bowls and bear claws while updating spreadsheets.
Rule of thumb: If you’re eating while working on a task you can do from home in your underwear, it’s probably not something the IRS will view as a justified business meal.
The exception: Eating on a business trip
The rule of thumb goes out the window if you’re on a legitimate business trip. (We’ll talk about what counts in the next section!)
If you had to leave town for work, feel free to write off your overpriced airport burrito or the takeout you ordered to the hotel.
Normally, you can only deduct 50% of a business meal's cost. But for the 2022 tax year, restaurant meals are 100% tax-deductible!
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 24a (“Travel”)
If you travel for business, there are a whole lot of write-offs you can claim.
You might be getting tired of hearing this, but travel expenses have to be business-related and within the realm of reason. You can't expect to deduct expenses that are:
Bottle service, we’re looking at you!
For more info on the rules, take a look at our guide to business travel deductions.
Here are write-offs you can claim:
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
It's crucial to invest in improving (or maintaining) your skills. That’s why the IRS lets self-employed people write off work-related education expenses.
Anything that helps you learn on the job counts as work-related education. You don’t need to get a degree or certificate.
Some examples include:
Everything you write off has to be:
You can’t write off any training designed to prepare you for a different job.
If you're a writer, for example, you can't deduct weekly karate classes.
But if you’re a fiction writer, you can deduct short story collections — something an Uber driver wouldn’t be able to write off.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
Tax-deductible subscriptions can overlap with education expenses. But so many freelancers miss out on this category, we thought it was worth calling out.
If you subscribe to any kind of publication, platform, or software service for work, it’s a write-off! This is a pretty broad category. It can include:
Professional membership fees and union dues are also deductible.
Depending on what you do for work, there might be some more specific subscriptions you can write off, like:
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)
All advertising costs are 100% tax-deductible. What’s more necessary to a business than promoting yourself, your services, and your products?
This deduction is a lot more flexible than most freelancers realize. Literal ads aren’t the only thing you can write off. Some other examples include:
There are plenty of creative ways to get more customers. So feel free to think outside the box!
For more creative ideas — including donating to a charity in exchange for a shoutout — check out our detailed guide to advertising expenses.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 11 (“Contract labor”)
It’s not unusual for freelancers to hire other freelancers. For instance, you might hire:
Go ahead and write off their fees!
Just remember: If you pay a contractor $600 or more over the course of the year, you'll have to file a 1099-NEC for them.
That’s unless you use a credit card or payment app like Venmo or PayPal. In that case, your payment processor will take care of issuing the form, and you have nothing to worry about!
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 17 (“Legal and professional services”)
Besides finding outside help to get the job done, business owners might hire a professional just to make sure their ducks are all in a row, legally speaking.
If your business ever needs you to hire a:
…go ahead and write them off!
These types of fees — especially legal fees — tend to be on the heavier side. That’s why no self-employed person should be leaving these write-offs on the table.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 15 (“Insurance”)
It costs money to protect yourself and your assets. Some businesses take on more risks than others. For those, insurance plans like:
…offer a healthy peace of mind.
If that’s the case, your monthly premiums are 100% tax-deductible.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 16b (“Interest: Other”)
If you took out a loan from a bank specifically for business purposes, the interest on that loan is a write-off. That includes:
Lots of freelancers rely on credit to maintain and grow their businesses — which can get expensive. It’s nice to put something back in your pocket at tax time.
💸 Use it to lower: Your self-employment taxes
🧾Where to claim it: Schedule C, Box 27a (“Other expenses”) and Form 4562
Sometimes, you need to spend money on your business before you’ve gotten a single client — or made a single dime. Good thing the IRS lets you write off these startup costs.
Here are some common ones:
The first year you’re in business, you can deduct up to $5,000 of these startup costs in one lump sum.
What if you spend more than $5,000 getting started?
Don’t worry: You can write off the rest of your startup costs by amortizing them — basically, spreading them out over several years. Our guide on startup costs will tell you how this works.
The write-offs above all go on your Schedule C and lower your self-employment tax. Self-employed people can also claim other tax breaks that work a little differently — they’ll lower your income taxes instead.
These types of tax breaks can be powerful financial tools for freelancers. Let’s dive into them — starting with the most confusing one.
💸 Use it to lower: Your income taxes
🧾Where to claim it: Schedule SE, Line 13 (“Deduction for one-half of self-employment tax”)
Did you know you can use your self-employment tax bill to lower your overall tax bill?
In the words of everyone’s favorite entrepreneurial raccoon: Yes, yes, it’s true! When it’s time to file income taxes, you can deduct half of the self-employment tax you’re paying.
This deduction is a little hard to wrap your head around — especially for new freelancers.
Let’s go over how it works.
Self-employment tax is how freelancers and gig workers pay their share of Medicare and Social Security taxes — also known as FICA taxes.
W-2 workers also pay FICA taxes, to the tune of 7.65%. Their employers pay another 7.65% on their behalf.
If you’re self-employed, though, your employer is… well, you. So you’re responsible for paying both halves of your FICA taxes, for a total rate of 15.3%. (This doubled FICA tax rate is what we’re referring to when we talk about “self-employment tax.”)
You have to pay twice the FICA taxes to be your own boss. It’s only fair that the IRS lets you deduct the “employer” portion when you file income taxes!
Finding out how much self-employment tax you can deduct
Want to see how much that deduction comes out to? You can find out in just two steps:
That’s the amount you can deduct when you pay income taxes!
💸 Use it to lower: Your income taxes
🧾Where to claim it: Form 8995
Introduced in 2018, the Qualified Business Income (QBI) deduction lets self-employed people write off up to 20% of their taxes.
All you need to do to claim it is to fill out Form 8995 (or, if your income is really high, Form 8995-A.) Our post on the QBI deduction explains everything you need to know!
🧾Where to claim it: Schedule 1, Line 17 (“Self-employed health insurance deduction”)
Healthcare costs are high enough to make anybody sick. You know it’s bad when even the IRS is sympathetic.
Because self-employed people don’t get the benefit of an employer-sponsored plan, they get to deduct health insurance premiums for themselves and their family, including:
Learn more about how this works in our guide to the self-employed health insurance deduction.
💸 Use it to lower: Your income taxes
🧾Where to claim it: Schedule 1, Line 16 (“Self-employed SEP, SIMPLE, and qualified plans”)
If you want to lower your tax bill now and prepare for the future, you can deduct the money you’re saving for retirement.
Freelancers can choose from several types of retirement plans, including:
If you’re making enough from freelance work to set some money aside, do it. Your future self will thank you — not just years from now, when you’re looking to retire, but months from now, when you have to file taxes.
💸 Use it to lower: Your income taxes and (future) self-employment taxes
🧾Where to claim it: Schedule 1, Line 8a (“Net operating loss”) and Form 461
Sometimes, businesses lose money. The IRS gets it. That’s why you can deduct your business losses.
You can learn more in our deep dive into business loss deductions. But here’s the info in a nutshell.
Say you lose money on your 1099 work while you’re also working a W-2 job. You can use your business loss to offset your W-2 income, lowering the amount you’ll be taxed on.
Lowering your income taxes
Here’s an example. Pretend you:
You’ll subtract your $3,000 loss from your $45,000 income. So you’ll only pay income taxes on the $42,000.
Lowering your self-employment taxes
You can also use your business losses to lower the self-employment taxes you pay in a future year, when you start earning money.
Losing money is completely normal – especially when you’re first starting out. You can use those losses to save on your taxes once you do make a profit.
Now you know the top write-offs for self-employed people. In case you're still not sure what counts, let’s cover a few more frequently asked questions.
All sorts of things! To write it off on your taxes, an expense has to be both:
There are a lot of creative business expenses that get overlooked or ignored because they seem too “weird.” Don’t let that be you!
When it comes time to do your taxes, really sit and ask yourself: What purchases did I make this year that helped me run my business?
You can make this process easy by having Keeper Tax automatically scan your purchases and create records for you!
Absolutely. You don’t need an LLC to claim write-offs. And you definitely don’t need an S corp.
All self-employed people can claim business expenses on their taxes. That’s true if you’re a:
If you’re spending money buying something that helps you do your work, take the write-off.
You can bet giant corporations are writing off every expense they can think of. Why shouldn’t you?
Actually, no! A physical receipt is only required if you paid for a business expense in cash and spent more than $75 dollars.
To learn more about why, check out our deep dive into receipts for taxes.
Technically, there’s no upper limit to the business deductions you can take.
However, some types of expenses have their own upper limits. For instance, your home office deduction can’t be more than your income.
As an independent contractor, you have to take advantage of all the write-offs you qualify for. Otherwise, you're basically giving the IRS a free gift.
And if you want an app to automatically find and track all your expenses for you, click here to get started with Keeper Tax.
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Photoshop, Microsoft Office, Adobe Creative Cloud - whatever you use for your craft.
Website hosting fees, plugins, stock photos, and themes are tax deductible!
A new computer, cell phone, keyboard, printer, monitor, mouse, it all counts!
Notebooks, sketchpads, pens, pencils, paper, stencils, paperclips galore!
Whether you pay rent or own your home, a portion of those expenses are tax deductible.
It'd be hard to work in an office without running water, huh? You water bill counts.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether rental or homeowner insurance, you can write off a portion as part of home office.
Your Wi-Fi bill is a tax write off. You need internet to do your job!
A desk, chairs, lamps, and other home office necessities are all tax write offs.
If you are self-employed, you can write off your medical and dental insurance coverage.
When you're traveling for work, all meals are tax-deductible. Even takeout!
When you travel for work, lodging expenses like hotel rooms and Airbnbs are write-offs.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
Gas is expensive! A portion of your gas station fill ups are tax-deductible.
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
Car insurance, roadside assistance, registration costs, etc. are all tax-deductible.
Parking for a meeting downtown or other work trip is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you discuss work with a coworker, client, or even a friend, it's a write-off!
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Conferences and classes that help you keep up with the industry are tax deductible.
Business cards & brochures are a marketing costs that can fully written off on taxes.
If you've had to set up an LLC or have other legal fees for work, that's tax deductible.
Commissions you pay to other agents or employees are fully deductible business expenses.
If you're with a national franchise or an independent broker, desk fees are deductible.
Registration fees and materials for courses like BOLD or GREL are tax deductible.
Online and newspaper ads, photography, staging, and signage are all tax deductible.
Office-related purchases like stationery, photocopies, and monitors are tax deductible.
Your state license renewal, MLS dues, and professional memberships, are deductible.
General business, as well as Errors and Omissions (E&O), insurance are tax deductible!
Lead generation software, like CRM or marketing automation software, is tax deductible.
To deliver a great experience to your passengers, you need to keep a clean car!
Good tunes in your car is part of delivering a great experience to your passengers!
Water bottles, gum & other goodies help a great experience to your passengers.
Floor mats keep the car clean and passengers happy (and prevent weekly car cleanings!)
If you're still paying down your car, you can claim those expenses!
If you drive your own vehicle, you can write off the annual depreciation of its value!
If you use your phone for work (who doesn't?) then it's partially deductible.
If you've bought extra chargers to juice in parallel, those are tax deductible!
If you charge at home, part of your monthly electricity bill is tax deductible.
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Equipment that helps you do pickups and handle the scooters is tax deductible.
If you charge your scooters in the garage, then you can claim home office tax deduction!
Sponsored search placements on Amazon, Etsy, etc are deductible advertising expenses!
Costs for email services like Mailchimp are a tax deductible marketing expense.
Every dollar you spend on Facebook Ads, Google Adwords, etc. is a tax deductible expense!
Online seller platforms take an arm and a leg on every sale. You can deduct those costs!
Sell hand-embroidered t-shirts? The cloth, labels and sewing machine are deductible!
If you employ people that help your business, that's tax deductible!
Any inventory costs from product that have been sold are tax deductible!
Online courses, summits, membership site subscriptions, workshops, etc are tax deductible!
The 2.75% (give or take) fee that you pay your payment processors ads up. It's deductible!
Cameras, video camera, lenses, lighting, tripods, used for work are all tax deductible!
Boxes, packing tape, bubble wrap, and postage fees — all of it's deductible!
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If you're lucky enough to be able to afford designers or researchers, it's deductible!
Your monthly phone bills are expensive! Good thing the cost is partially deductible.
If you write about ancient Greece and buy an urn, it's deductible! (and weird)
Poop bags, as well as the little dispensers, are tax deductible work expenses!
Dog walking requires... a lot of walking! If bought walking shoes, it's deductible!
Dogs need to be walked rain or shine! Rain gear bought for the job is deductible.
If you buy extra treats for the dogs you walk, you can write that off on your taxes!
Tennis balls, and other toys you buy for the dogs you walk are tax deductible!
If you've had to buy extra leashes or harnesses, those purchases are tax deductible!
If you bike to get to and from your dog walking clients, it and repairs are deductible.
Public transportation expenses to / from your dog walking clients are deductible!
If you use a credit card to purchase business goods, you can write off the interest!
Grabbing fresh sheets, towels, or even just toilet paper for your guests can be deducted!
Write off anything related to keeping your rental space safe and cozy!
Treating your guests pays off! Write off that bottle of wine or house breakfast.
The percentage AirBNB takes for every guest? Don't worry you'll get it back in write offs!
When your income comes from renting part of your house, write off the mortgage interest!
Cleaning up doesn't sound so bad after you know you can deduct it from your taxes!
Storage to handle heavy digital files (business related) such as Dropbox or a hard drive.
Any clothing or beauty products used to review or just look your best for content.
Live webcasting apps or creative apps that help you look flawless and reach your audience.
Anything you order to show off your personal brand: Tshirts, stickers, mugs, etc.
If you want to reward your followers with a prize or giveaway, go ahead and write it off!
Write off any software you use for video and photo editing or content creation.
If you need to hire an editor, designer, or set assistance to help you, write it off!
Videocameras, mics, tripods, lenses, anything used to create content, you can write off.
If you are a fitness vlog, write off all those mats, weights, and other equipment used!
Focused on food or cooking? Write off all the supplies needed to produce your video.
Audition tapes, portfolios, business cards. Write off anything used to promote yourself.
Deduct any commision that the agency hiring you takes from every shoot or show.
Make up, hair treatments, or beauty supplies used for work are partially deductible!
Any expense from a modeling coach or other relevant training can be written off.
Your regular dues to participate in a union in your field can be written off.
Word and other editing software are 100% necessary for your job, write it off!
Pay to be a member of any writers organizations? Write off that annual fee.
Write off any books that help you manage your business or that are relevant to your field!
If PayPal or another payment method charged a fee for buying your book, write it off!
Seeing a show or performance counts as research, study up and write it off.
If an agent is helping you find gigs, deduct their fees from your next taxes.
That's right, Netflix is also a write-off! Films are considered research for your job.
Write off beauty supplies or treatments if they were related to a performance.
As long as it is not considered suitable for "streetwear" it can be written off!
Props you use to make class more exciting and easy to understand are deductible!
Rewards systems, which are created for our students, are very much tax write-offs.
ESL companies require teachers to have a decorated classroom which is our home office.
If you work for a delivery app service and they charge commission, write it off.
Required to wear a delivery app's merchandise? Write-off the shirts and bags!
